Steel imports hurting Ohio companies, U.S., feds say

Imported steel is hurting the economy in cities like Lorain — and the national security of the United States, according to federal findings examining the effects of steel made in other countries.

Now Ohio’s legislators in Washington want action on possible tariffs and quotas on imports from countries known for “dumping” their steel on the U.S. market.

On Feb. 16, U.S. Department of Commerce Secretary Wilbur Ross published reports about the effects of imported steel products and aluminum products. The analyses were performed under Section 232 of the Trade Expansion Act of 1962, according to the Department of Commerce, and the findings are referred to as 232 reports or investigations.

The steel report quantified what Ohio lawmakers and Lorain residents have claimed for years: that domestic steel manufacturers have closed up shop because other countries have subsidized steel makers who ship their products to sell in the United States.

“Our steel companies and steelworkers deserve the chance to compete on a level playing field, too, and I invite you to come to Ohio and tour a steel mill with me,” Brown said in a letter to Trump.

“This opportunity would allow you to see firsthand how impressive our steel manufacturers are and hear directly from the workers about the impact global steel overcapacity and unfair trade practices have had on their jobs and families,” Brown said to the president. “In addition, this tour will make sure U.S. steelworkers get to participate in the Section 232 decision-making, which will directly affect their livelihoods.”

The decision-making involves potential actions to address the problems of steel imports, according to the Department of Commerce.

Ross recommended the president consider three options:

• A global tariff of at least 24 percent on all steel imports from all countries

• A tariff of at least 53 percent on all steel imports from Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey and Vietnam; with quotas for other nations

• A quota on all steel products from all countries equal to 63 percent of each country’s 2017 exports to the United States

The Department of Commerce report includes testimony by industry experts.

Rep. Marcy Kaptur, D-Toledo, was the only member of Congress to testify for the investigation. She represents Ohio’s 9th Congressional District, which includes Lorain, and she mentioned Lorain specifically.

“Now that this report is public, Congress and the American people can be on the same page when it comes to what remedies the president is seeking to deter the illegal dumping of foreign steel,” Kaptur said. “Steelmaking communities like those in Northern Ohio are hurting, Mr. President, we must not delay action any further.”

The U.S. Department of Commerce report refers to Lorain in a section on steel mill closures.

The Republic Steel electric arc furnace is one of four facilities that have closed, along with plants of Evraz in Claymont, Delaware; ArcelorMittal in Georgetown, South Carolina; and Gerdau in Sand Springs, Oklahoma, according to the 232 report.